In today’s highly competitive business environment, adapting to change is often what separates successful companies from unsuccessful ones. In fact, 47% of surveyed managers say they must reinvent their businesses at least once every three years to survive.1
While organizational change is necessary, many employees naturally resist it. As a result, up to 70% of all change initiatives fail.2
This statistic highlights the importance of change management and change leadership. While these two key concepts may sound similar, they differ in fundamental ways. Below, we’ll break down change management vs. change leadership and discuss how you can pursue a career path in either field.
Change is inevitable in any organization. To stay competitive in today’s fast-paced business world companies must adapt and evolve. However major change initiatives often fail, with some estimates putting the failure rate at 70%. This highlights the importance of understanding the differences between change management and change leadership.
While these two concepts sound similar, they play distinct roles in enacting organizational change. In this article, we’ll compare change management vs change leadership analyzing how each contributes to change initiatives.
What is Change Management?
Change management refers to the structured process of transitioning an organization from its current state to a desired future state. The goal is to implement changes smoothly and methodically, minimizing disruption to operations.
Some key principles of change management include
- Having a clear vision and goals for the change initiative
- Communicating frequently with stakeholders throughout the process
- Addressing any resistance and concerns from employees
- Providing adequate training and resources to facilitate the transition
- Garnering visible support from leadership
There are several well-known change management models that outline steps organizations can take:
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Kotter’s 8-Step Model – This model includes creating urgency, forming a coalition, developing vision and strategy, communicating this vision, removing obstacles, achieving short-term wins, building on changes, and institutionalizing the changes.
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Lewin’s 3-Stage Model – Also known as Unfreeze-Change-Refreeze, this model focuses on preparing for change, implementing changes, and solidifying changes.
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Prosci’s ADKAR Model – With a focus on the human aspect, this model highlights the importance of awareness, desire, knowledge, ability, and reinforcement when getting employees to adopt changes.
The appropriate model depends on factors like the scope of change and expected timeline. But they all provide frameworks to follow.
What is Change Leadership?
Unlike change management’s focus on structured execution, change leadership deals with the human side of change. Change leaders are responsible for laying the vision and strategy that serves as the impetus for change initiatives.
Effective change leaders often exhibit the following traits and skills:
- Strategic thinking – Assessing the big picture to determine needed changes
- Vision – Creating an inspiring vision of the future
- Motivational – Generating excitement for changes
- Empathy – Listening to concerns without judgment
- Communication – Explaining the rationale for change
- Problem-solving – Navigating hurdles smoothly
- Resilience – Recovering quickly from setbacks
- Adaptability – Modeling the ability to change
There are leadership styles and theories that align well with driving change:
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Transformational Leadership – Connecting change to the company’s mission and identity to motivate employees
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Strategic Leadership – Anticipating change, challenging status quo, aligning stakeholders, and promoting continuous learning
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Situational Leadership – Adjusting leadership approach based on followers’ competence and commitment
While change management and leadership have overlap, their focuses differ.
Key Differences Between Change Management vs Change Leadership
Change Management
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Executes a structured implementation plan
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Manages specific tasks, timelines, and milestones
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Provides training and resources to facilitate transition
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Closely monitors progress at each stage
Change Leadership
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Sets the vision and strategy for change initiatives
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Motivates and inspires people through the process
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Addresses concerns and resistance proactively
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Empowers employees to pursue the vision
How Organizational Psychology Factors In
Organizational psychology, which examines human behavior in the workplace, relates closely to change management and leadership. Organizational psychologists can provide insights to:
- Gauge employees’ readiness for change
- Pinpoint areas of resistance
- Enhance team collaboration
- Foster positive organizational culture
- Assess effectiveness of initiatives
For these reasons, organizational psychologists are invaluable members of change coalitions.
Pursuing a Career in Change Management or Leadership
While change management and change leadership have distinct focuses, both play crucial roles in driving organizational change. Professionals interested in either field can benefit from relevant master’s or doctoral degree programs.
For instance, a Master of Business Administration (MBA) provides foundational business knowledge along with courses in leading organizational change. Or a Doctor of Philosophy (PhD) in Organizational Psychology offers advanced expertise in managing change using insights into human behavior.
With the right education and experience, professionals can become highly effective change agents whether they gravitate toward hands-on change management or inspirational change leadership. Organizations need both skill sets to give change initiatives the best chance of succeeding.
Traits and Qualities of Effective Change Leaders
Effective change leaders can benefit from possessing the following qualities:
- Strategic thinking – A change leader should be able to think strategically and evaluate the big picture. This way, they can determine the right change initiatives and pursue them proactively, rather than reacting to problems after they’ve already occurred.
- Vision – Pursuing the right types of change requires a future-focused mindset. Change leaders are responsible for developing and communicating a compelling vision for their organization’s future. This vision can serve as a compass for all subsequent decisions when leading change.
- Enthusiasm – Persuading employees to embrace change can be challenging. Not only do change leaders need to alleviate their concerns and resistance, but they also need to garner excitement for the positive outcomes that await the organization on the other side.
- Empathy – Steamrolling stakeholders is not a productive way to bring them on board. Instead, change leaders must take time to listen to employees concerns and address them empathetically. By exhibiting understanding and patience throughout the process, a change leader can boost their chances of winning over lukewarm participants.
- Communication skills – In addition to having a motivational attitude, change leaders need to possess exceptional communication skills. This way, they can explain the reasons behind their recommended change initiatives and outline the steps involved in pursuing them.
- Problem-solving skills – Enacting change within an organization, whether it’s big or small, rarely takes place without some setbacks. Change leaders must be able to navigate hurdles that arise with strategy and confidence.
- Resilience – Change leaders must stay optimistic as they navigate employee resistance and other obstacles. By learning how to recover from setbacks quickly, change leaders can keep the process moving and increase the likelihood that their initiatives succeed.
- Adaptability – Change leaders need to practice what they preach. If they expect employees to adapt to change, they must also exemplify adaptability and act as role models by maneuvering change with a positive attitude.
What is Change Management?
Change management is the process of approaching organizational change systematically to ensure a smooth transition. The different types of change management can be used to tweak or transform a company’s strategy, structure, culture, processes, or technology systems.
Change Management versus Change Leadership: What’s the Difference?
What is the difference between change leadership and change management?
While change leadership and change management both associate with organizational change, they also have some differences, which include: More often, change management is associated with smaller organizational changes. For example, the transition of leadership to someone new after the previous leader steps down, leaves or retires.
What is the role of leadership in change management?
Crucial leadership in change management involves directing and guiding employees through the process of change. It focuses on establishing a vision, communicating effectively, and ensuring alignment among team members.
What is change leadership?
So it is a way of making a big change and keeping it, in a sense, under control. Change leadership is much more associated with putting an engine on the whole change process, and making it go faster, smarter, more efficiently. It’s more associated, therefore, with large scale changes.
How does change management affect organizational change?
More often, change management is associated with smaller organizational changes. For example, the transition of leadership to someone new after the previous leader steps down, leaves or retires. This shift may have a greater impact on certain professionals, but little impact on others less connected with the area where the change takes place.
